Delta Corporation has three divisions, East, West and North. The following data pertain to operations in May. Sales Variable expenses Divisional margin East West North $ 45,000 $150,000 $72,000 $ 26,000 $(12,000) $ 90,000 $40,000 $25,000 $18,000 Total fixed expenses: $95,000. 1- Prepare a segmented income statement. Presentation should be in a good form. 2- Determine the net operating income (loss) if the corporation eliminates the "East division.
Delta Corporation has three divisions, East, West and North. The following data pertain to operations in May. Sales Variable expenses Divisional margin East West North $ 45,000 $150,000 $72,000 $ 26,000 $(12,000) $ 90,000 $40,000 $25,000 $18,000 Total fixed expenses: $95,000. 1- Prepare a segmented income statement. Presentation should be in a good form. 2- Determine the net operating income (loss) if the corporation eliminates the "East division.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Delta Corporation has three divisions, East, West and North. The following data pertain to operations in May.
Sales
Variable expenses
Divisional margin
East
West
North
$ 45,000
$150,000
$72,000
$ 26,000
$ 90,000
$40,000
$(12,000)
$ 25,000
$18,000
Total fixed expenses: $95,000.
1- Prepare a segmented income statement. Presentation should be in a good form.
2- Determine the net operating income (loss) if the corporation eliminates the "East division.
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